Atlantic City ordered to prepare for a public vote on Revel casino $300M tax break

Mel Evans/AP PhotoConstruction of Revel Casino is seen in 2009 in Atlantic City.ATLANTIC CITY — A judge ordered Atlantic City today to start preparing for a public referendum on whether the state should grant a $300 million tax break to the stalled Revel casino project.

Bob McDevitt, president of the Unite-HERE casino workers union, has been one of the most vocal critics of the proposed tax break. The union fears Revel's opening might push at least two weaker casinos out business, costing thousands of jobs.

"It is unconscionable that Atlantic City politicians have thrown up every available roadblock to try to stop the people of this city from voting or even understanding this deal," he said. "Fortunately, the judge recognized that the city's attempts to block the will of the people is unlawful."

A city spokesman did not immediately return a call seeking comment.

It is far from clear that a referendum will ultimately be held. The State Legislature passed a bill that would prevent referendums on all projects receiving state stimulus money. It is awaiting action by Gov. Chris Christie, who has refused to say whether he will sign it.

If the application to the state Economic Development Authority is approved, the casino would be reimbursed three-fourths of its sales and room taxes for 20 years.

Supporters say the Revel project is Atlantic City's best bet to combat fierce competition from slots parlors in neighboring states.

The tax break looms even larger now that Morgan Stanley, Revel's main backer, pulled out of the deal last week.

The Wall Street giant, which has sunk $1.2 billion so far into the half-finished Boardwalk casino-hotel, said last Thursday it is walking away from the project, hoping to either sell or auction off its 94 percent ownership of the project.

Revel Entertainment says it still expects the casino to get built and is pursuing the last $1 billion or more that it will take to complete the project from China's Export-Import Bank.

Revel got under way in 2007, when lenders still weren't questioning even $2 billion deals too much. But it ran out of money in early 2009 after the recession hit and credit markets dried up. That forced a halt to work on everything but the exterior of the project.